The 10-second takeaway
For the quarter ended March 31 (Q1), Cray beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Gross margin dropped, operating margin expanded, and net margin grew.
Cray reported revenue of $112.3 million. The three analysts polled by S&P Capital IQ foresaw revenue of $99.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $39.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.13. The three earnings estimates compiled by S&P Capital IQ predicted $0.03 per share. GAAP EPS were $0.13 for Q1 compared to -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.2%, 290 basis points worse than the prior-year quarter. Operating margin was 7.5%, 690 basis points better than the prior-year quarter. Net margin was 4.4%, 810 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $54.0 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $404.2 million. The average EPS estimate is $0.44.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 138 members out of 169 rating the stock outperform, and 31 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Cray a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cray is buy, with an average price target of $10.17.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.